Tax reform, a currently unknown amount of the minimum wage and a budget deficit target of up to 3% in 2027 were among the leading topics on the political and economic agenda. In parallel, fuel prices continued to rise, and the government announced measures against the risks of quick loans and gambling.
On October 25, Bulgaria will elect a president and vice president. 27 presidential candidate pairs are participating in the final race. Initially, the lists registered with the Central Election Commission were 28, but the registration of Yavor Genov and Maxim Velkov was deleted due to an insufficient number of valid signatures. The election campaign began on September 25 and will end on October 23.
What does the tax reform include
The government has proposed taxing the excess profits of banks, payday loan companies, insurers, retail chains and telecommunications operators. The proposed rate is 33%, with the proceeds to support the expansion of tax breaks for children.
The annual tax base of parents with one child will be able to be reduced by 5,000 euros. Higher breaks are also planned for families with two or three children, as well as for children with disabilities. A new relief will allow deductions for expenses for language, educational and sports activities, with a limit of 2,000 euros and documentary proof of the visit.
“We believe that taxation of excess profits should lead to a decrease in prices, rather than an increase“, said Deputy Minister of Finance Lyudmila Petkova. According to her, lower prices and fees would limit the possibility for companies to form excess profits.
Vouchers, real estate and budget deficit
The changes provide for food vouchers to be up to 200 euros before taxation. After the proposed 7% levy, the employee would receive 186 euros.
A phased increase in property tax assessments is also planned by 30% in 2027, 35% in 2028 and another 35% in 2029. Deputy Minister Petkova indicated that the goal is to reach a total increase of 100% in three years. The higher assessments will be reflected in the property tax, but not in the "garbage" fee.
Prime Minister Rumen Radev said that the government is striving for the 2027 budget to be within a 3% deficit. Finance Minister Galab Donev said that taxes will not be increased and that the cabinet will rely on enhanced fiscal control and measures against VAT fraud.
Minimum wage remains without a final amount
The amount of the minimum wage for 2027 has not yet been determined. An interdepartmental working group at the Ministry of Finance was supposed to prepare a new mechanism for its calculation, after which discussions on the draft budget for next year would begin.
The unions insist on a specific amount that is economically justified and socially acceptable. CT “Podkrepa“ proposed a range between 692 and 750 euros, and the Confederation of Bulgarian Trade Unions and Employers (CITUB) determined 700 euros as the necessary amount according to the current rules.
Fuels, quick loans and gambling
During the week, diesel prices increased by 3 euro cents and gasoline by 1 euro cent per liter. Prices reached about 1.95 euros per liter of diesel and 1.70 euros per liter of gasoline. Representatives of the sector warned that the increases may continue.
The authorities announced their intention to limit the granting of quick loans to gambling addicts and to introduce additional rules for the sector. A more comprehensive reform of gambling is also planned, which will not be limited to advertising.
Sources: BNR